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TMI Blog2017 (12) TMI 1268X X X X Extracts X X X X X X X X Extracts X X X X ..... d that "any other process" will necessarily have to be one like bleaching, mercerizing, shrink-proofing etc. resulting in permanent change in the characteristics of the fabrics and mostly involving use of a chemical agent. Per contra, "cropping" involves removal of fibres from surface of the fabrics, by cutting projecting fibres and yarn, the terms "cropping" and "shearing" are very often used interchangeably. The only apparent difference being that in shearing the fibres are cut in an angular manner on the surface of the fabric itself. Both these processes are intended to give a clean and smooth appearance to the fabric and to control pill formation. The cropping or for that matter, shearing processes cannot be considered as being of the same genre as bleaching, mercerizing, dyeing, printing etc. The process of "cropping", which merely involves cutting away mechanically loose ends from the fabric to give a clean and smooth appearance will not fall within the ambit of "or any other process" for the purposes of Chapter Note 3 of Chapter 52 or Chapter Note 4 of Chapter 55 of the Schedule to the Central Excise Tariff Act, 1985 - any conclusion that the impugned cotton / synthetic g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rise visit made by the departmental officers to the appellant s unit on 10/11.11.2000, it was found that they were in possession of two cropping machines which were used to cut loose threads, hanging ends, shearing, protruding apart from brushing to clean superficial foreign materials like dust, fluff etc. Scrutiny of registers revealed that cropping of grey fabric was done by the appellant. As appellants possessed facilities for carrying out the processes mentioned in the aforesaid notifications, Department therefore felt that they were not eligible to clear the cotton/synthetic fabrics subjected to the process of cropping without payment of duty by availing the benefit of the aforesaid notifications. Accordingly, show cause notice dt. 3.7.2001 was issued to the appellant inter alia proposing that the cotton and man-made fabrics falling respectively under chapters 52 and 55 should be classified as cropped fabrics, demand of differential duty of ₹ 8,22,61,848/- with interest thereon on said cropped fabrics for the period June 1996 to October 2000 and imposition of penalties under various provisions of law. These proposals were confirmed in the impugned Order-in-Original dt. 0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... alendering involved in the above cited case law is different from the process of cropping involved in the appellant s case. The issue resolved therein is whether the grey fabrics subjected to the process of calendering can be made liable for excise duty when the said process does not amount to the process of manufacture and it does not change the characteristics of the said fabrics and (ii) whether the expression any other process in the Section would include calendering process when the process involved in calendering is not similar to the other processes specifically notified thereunder. (vi) Ld. Sr.counsel also relied upon the following case laws/orders: (a) Japan Dyeing Works Vs. Collector of CE - 1992 (61) ELT 289 (Tri.) (b) Versatile Enterprises Pvt. Ltd. Vs. Collector of CE., Meerut 2001 (130) ELT 770 (Tri.Del.) (c) JCT Ltd. Vs. CCE, Jaipur - 2001 (133) ELT 651 (Tri. Del.) (d) Dhanalakshmi B Mills Ltd. Vs. Collector of CCE., Coimbatore 1999 (112) ELT 149 (Tr.) (e) Indore Wire Company Ltd. Vs. UOI - 2006 (203) ELT 179 (SC) (f) New Shorrock Mills Vs CCE. - 2006 (202) ELT 192 (Tri.-LB) (g) Order-in-Appeal No.112/2004 dated 3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng, shrink proofing, organdie processing, Or any other process or any one or more of these processes: 5208.29 - Other Woven fabrics. Chapter Note 3 of Chapter 52 (Cotton) reads that in relation to products of heading Nos.52.07, 52.08 and 52.09, bleaching, mercerizing, dyeing, printing, water-proofing, shrink proofing, organdie processing or any other process or any one or more of these processes shall amount to 'manufacture'. Chapter 55 - Man made fibres. 55.11 Woven fabrics of synthetic staple fibres, containing 85% or more by weight of synthetic staple fibres. 5511.10 - Not subjected to any process. - Subjected to the process of bleaching, mercerising, dyeing, printing, water-proofing, shrink proofing, organdie processing, or any other process or any one or more of these processes: 5511.29 - Other Woven fabrics 55.12 Woven fabrics of synthetic staple fibres, containing less than by weight of synthetic staple fibres, mixed mainly or solely Cotton. 5512.10 - Not subjected to any p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ctrine has been elucidated in Brooms Legal Maxims, Twelfth Edition as under : It is a rule laid down by Lord Bacon, that copulatio verborum indicat acceptationem in eodum sensu the coupling of words together shows that they are to be understood in the same sense. And, where the meaning of a particular word is doubtful or obscure, or where a particular expression when taken singly is inoperative, the intention of the party who used it may frequently be ascertained by looking at adjoining words, or at expressions occurring in other parts of the same instrument, for quf non valeant singular juncta juvant words which are ineffective when taken singly operate when taken conjointly: one provision of a deed, or other instrument, must be construed by the bearing it will have upon another. In the construction of statures, likewise, the rule noscitur a sociss is frequently applied, the meaning of a word, and consequently, the intention of the legislature, being ascertained by reference to the context, and by considering whether the word in question and the surrounding words are, in fact, ejusdem generis, and referable to the same subject-matter. Especially, must it be remembered t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ena of cases but its application is to be made to the context and the setting in which the words came to be used or associated in the statute or the statutory rule. [para 6] 6.5 Applying the doctrine of Noscitur a sociis, we therefore have no hesitation to hold that any other process will necessarily have to be one like bleaching, mercerizing, shrink-proofing etc. resulting in permanent change in the characteristics of the fabrics and mostly involving use of a chemical agent. Per contra, cropping involves removal of fibres from surface of the fabrics, by cutting projecting fibres and yarn, the terms cropping and shearing are very often used interchangeably. The only apparent difference being that in shearing the fibres are cut in an angular manner on the surface of the fabric itself. Both these processes are intended to give a clean and smooth appearance to the fabric and to control pill formation. In our view, the cropping or for that matter, shearing processes cannot be considered as being of the same genre as bleaching, mercerizing, dyeing, printing etc. 6.6 The Tribunal in the case of Siddeshwari Cotton Mills Pvt. Ltd. - 1984 (18) ELT 297 (Tribunal) had inte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t a genus or a family which admits of a number of species or members. If there is only one species it cannot supply the idea of a genus. In the present case the expressions bleaching, mercerising, dyeing, printing, water-proofing, rubberising, shrink-proofing, organdie processing which precede the expression or any other process contemplate processes which impart a change of a lasting character to the fabric by either the addition of some chemical into the fabric or otherwise. Any other process in the section must, share one or the other of these incidents. The expression any other process is used in the context of what constitutes manufacture in its extended meaning and the expression unprocessed in the exempting notification draws its meaning from that context. The principle of construction considered appropriate by the Tribunal in this case appears to us to be unsupportable in the context in which the expression or any other process has to be understood. 9. It was then contended by Sri Sorabjee that plain-calendering process neither adds anything to the cotton fabric nor the effect brought about by it is lasting. It is, according to learned counsel, nothing more than ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation was only to cut-off protruding stray fibres from the 'grey fabric', and that actual processes of calendering and shearing involved in the present case were amongst the simplest of the processes and did not have the effect of brining about any change in the grey-fabric . 11. These matters depend on particularities of the facts of each case and are to be decided on a case by case basis. The Tribunal proceeded on the basis that Calendering and Shearing amounted to process of finishing and that by itself, without more, satisfied the conditions that would take the case out of Rule 49A(1). The test applied by the Appellate Tribunal, as well as by the authorities below, is not the appropriate one on the language of Rule 49A. Any processing that can take a case out of Rule 49A(1)(b) must be a process which renders cotton-fabric cease to be grey fabric as commercially known and understood. The question whether 'calendering and shearing', as actually carried out by the appellant has had the effect of taking the cotton fabric out of Rule 49A(1) should be decided in the light of this test. 12. In the present cases, the claim of the appellant before the autho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... no doubt shorter than the one given in the Reference books referred to in the decisions cited by both the parties. But that, to our mind, does not advance the case of the department. Cutting away mechanically of loose ends from the fabrics cannot mean that the cutting should be confined only to the loose ends of yarn at the edges. The loose ends in the fabrics in the knitted fabrics are there not only at the edges but also on the surface. Since the definition of the term Cropping in the Notification does not itself say that the cutting the loose ends is to be limited only to the loose ends present in the fabric at the edges and not on the surface, this criterion cannot be imported into the matter for deciding the applicability of the exemption Notification as has been done by the Collector. The shorter definition of the term in the exemption Notification does not have the effect of curtailing the normal meaning of the terms given in the Standard Technical Books referred to in the Mafatlal decision of the Supreme Court. Accordingly, we accept the plea of the appellants that the process in question does not attract duty as held by the department. The appeal filed against the ab ..... X X X X Extracts X X X X X X X X Extracts X X X X
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